(Boursier.com) — At 526.1 ME, the turnover of BIC in the 4th quarter of 2023 increases by +15.9% at constant exchange rates (+2.4% on a comparable basis), including +13.5 points attributable to Argentina. This growth is driven by double-digit growth recorded in Latin America and sustained performance in Europe, particularly in the Blade Excellence division.
For 2023, BIC’s turnover stands at 2.263 billion euros. It increased by 9.2% at constant exchange rates (+3.5% on a comparable basis), including +5.5 points attributable to Argentina.
The gross margin in the 4th quarter of 2023 stood at 51.6%, an increase of 5.4 points. The gross margin in 2023 is 50.7%, an increase of 2.4 points, driven by the favorable impact of the price and mix ratio and the improvement in the production and purchasing process. These positive effects were partially offset by cost inflation (raw materials and electricity), unfavorable absorption of fixed costs and variation in exchange rates (mainly USD/MXN, USD/ARS and EUR/TRY – the hedge EUR/USD having a favorable impact) as well as the deterioration of the mix linked to the lower contribution of the Lighters activity in the United States.
The adjusted operating margin in the 4th quarter of 2023 stood at 13.8% (8.2% in the 4th quarter of 2022), an increase of 5.6 points. The adjusted operating margin in 2023 stands at 14.7% (14% in 2022). The positive impact of improved gross margin was partially offset by higher operating expenses and investments in brand support.
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Net income, Group share in 2023 stands at €226.5 million (198.6 ME in 2022). It comes out to 5.30 euros per share. The effective tax rate in 2023 was 27.6%, compared to 28.4% in 2022.
Net cash flows linked to operating activity reached €469.2 million in 2023, supported by good commercial performance. The unfavorable variation in working capital requirements, amounting to €27.4 million, attributable to the fall in inventories, was more than offset by the increase in trade receivables and the fall in supplier debts.
Net free cash flow before acquisitions and disposals in 2023 amounted to €248.7 million. At the end of December 2023, the net cash position stood at €385.4 million, after taking into account the payment of dividends and €116.2 million in share buybacks.
Shareholder remuneration
An ordinary dividend of 2.56 euros per share was paid on May 31, 2023. At the end of 2023, the amount of shares repurchased by BIC company amounted to 116.2 ME, including 100 ME for cancellation and 16.2 ME free shares to be allocated (long-term incentive). In total, 1,951,722 shares were repurchased at an average unit price of 59.52 euros.
For 2023, the BIC Board of Directors has decided to propose a total dividend of 4.27 euros per share including an ordinary dividend of 2.85 euros per share to be paid on June 12, 2024, and an exceptional dividend of 1.42 euros per share to be paid on September 18, 2024.
In 2024, up to €40 million will be allocated to the share buyback program.
Outlook 2024
BIC’s revenue growth in 2024 is expected to be between +5% and +7% at constant exchange rates thanks to the effect of volumes, price and mix. In 2024, the group expects a slight improvement in adjusted operating margin, thanks to positive leverage on operating costs.
The group will continue its efforts to increase the operating margin with a view to supporting long-term profitable growth, in line with our objectives for 2025. The generation of net free cash flow is expected to be above 220 ME in 2024.
“We are entering fiscal 2024 with dynamism and confidence, with our priorities focused on rigorous commercial execution and continued innovation. In line with our strategic objectives, we will continue to leverage new product launches and seize development opportunities geographical, while generating solid margins thanks to the optimization of our operational process, all with a view to maximizing our net free cash flow”, comments Gonzalve Bich, Managing Director of BIC.